Friday, March 26, 2010

CUT IT OUT!!!!!

The Obama administration announced new ways Friday to tackle the foreclosure crisis, in part by requiring lenders to temporarily slash or eliminate monthly mortgage payments for many borrowers who are unemployed.

This will do nothing to stabilize real estate markets. If it were a good idea, lenders would be doing it without government coercion. At what point does it end? Shouldn't we be more concerned with helping business make new jobs? Oh, right. The new healthcare bill and extended jobless benefits are killing more jobs.

The program is supposed to help "responsible homeowners who have been affected by the economic crisis through no fault of their own" by expanding flexibility for mortgage servicers and originators to assist more people who are unemployed and who have been hit by falling home values". How does the government plan to test this? What is the criteria?